Terrifying Loophole: Russia Secretly Uses Fertilizer Firms to Fuel Its War Machine

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

Despite strict international sanctions, Russia is still finding ways to get chemicals that help in making explosives. Many Western countries placed bans on selling such materials to Russia after it launched a full-scale war against Ukraine. However, Russia is getting these key chemicals by purchasing them from fertilizer companies that are not directly under sanctions.

A recent investigation found that Russian defense companies have ordered large amounts of nitric acid and other chemicals from fertilizer companies. These chemicals are needed to make TNT, gunpowder, and other explosives. Even though these companies are supposed to sell their products for farming, some of their supplies are ending up in Russian weapons factories.

The Companies Involved and the Chemicals Being Bought

One of the companies making these purchases is JSC Spetskhimiya, a Russian explosives manufacturer. According to leaked documents, this company has ordered tens of thousands of tons of nitric acid and a mix of nitric and sulfuric acid. These chemicals are used to make powerful explosives that Russia’s military relies on in its war against Ukraine.

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The companies selling these chemicals are major fertilizer producers. They are not officially part of Russia’s defense industry, so they have not been directly sanctioned by the U.S. and Europe. This has allowed them to continue selling large amounts of chemicals that can be used for both agriculture and weapons manufacturing.

Reports show that many of the Russian factories receiving these chemicals have already been sanctioned for their involvement in making military equipment. The European Union (EU) even imposed direct sanctions on JSC Spetskhimiya in June 2024. However, since the fertilizer companies themselves are not strictly blocked, their products continue to flow into Russia.

Documents show that the chemical shipments are already scheduled to arrive in Russia throughout 2025. With the amount of nitric acid being imported, Russia could produce at least 6,500 artillery shells per day. This is a significant number, considering the ongoing war and the need for continuous ammunition supplies.

Why These Sales Are Still Happening

One of the main reasons these fertilizer companies are not fully sanctioned is because they play a major role in global food production. Russia supplies about 25% of Europe’s fertilizers, making it an important player in agriculture. Since the war began in 2022, Russia has continued to sell fertilizers to Europe, earning around $5.4 billion from these exports.

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Because of this, Western countries have been hesitant to place full sanctions on these fertilizer companies. They fear that doing so would lead to a major crisis in food production, causing higher prices and food shortages in many parts of the world. As a result, these companies are still allowed to operate, even though their chemicals are being used in Russia’s war efforts.

Another recent development could make things even easier for Russia. On March 25, Russia agreed to a partial ceasefire in the Black Sea after talks with U.S. officials. In exchange, the U.S. promised to help Russia regain access to global markets for agricultural and fertilizer exports. This deal could make it even harder to stop the flow of key chemicals that Russia needs to keep its military supplies running.

Even though these fertilizer companies insist that their products are meant for farming, the evidence suggests otherwise. With ongoing loopholes in the sanctions, Russia continues to find ways to get what it needs to keep its war machine going.

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